Federal Reserve and Forex
Currency Wars have begun and there is no clear winner in sight.
China says its prepared to keep its currency at whatever levels necessary to avoid an international crisis.
When you consider the fact that the riots in HONG KONG were initially started because of the way powers at be in that part of the world
selectively chooses its wording.
We can only wonder why China would choose to release such a powerful statement.
China has managed to perfectly prop its currencies up since the election of the 45th president back in 2016. China Exports are down only 8% while imports have dropped by a whopping 28%, The Chinese Government seem to be executing strategies laid out by the current United States Administration much better than the "very smart people" who conceived the "Our Country First" Agenda.
Strategies like letting their banks fail and taking them over, something that many in the current administration were begging the United States to do in 2008. Actually, that's exactly what makes the "Made in China" label so widely accepted. Taking the ideas/inventions of others and executing them better, sooner and at a much cheaper price. China has admittedly and explicitly stated that they want to make/sell more goods on their home soil and our current administration set them up perfectly by adding tariffs.
China already accounts for 47% of World GDP and we all know they're not going to stop there.
Bottomline is given recent events, we must acknowledge that the Trade War is confirmation to all that China is a worthy Competitor.
A Competitor that the United States may want to offer a decent proposition before it is too late.
The Dollar and Oil could fall dramatically from here.
I know how controversial it is to talk about the most sought after currency on earth taking a complete nosedive from here has become.
It is something that must be discussed if you want to make any sort of investments. The "Greenback" has become a target to many around the world, most notably Europe.
While their currencies fall to levels very close to those of the USD many people are praising the Strength of the dollar.
When the Yuan loses value, China is labeled a manipulator but when the EURO AND THE POUND fall rich Americans praise celebrate and starts to add those currencies to their portfolio. The EUR/USD pair has had the world's attention for years now.
We completely ignore the fact that the devaluation of currencies across Europe has become a serious threat to us globally. When one USD is Equal to one Euro and one GBP, the real currency/trade war will begin.
Federal Reserve complicit in bankrupting the Country.
The strength of the Dollar globally has become both a gift and a curse.
While its purchasing power and reputation has made the Dollar arguably the safest asset to own in recent history.
Interest Rates AKA the only real way to insure the Dollar's stability are treated as some sort of economic vehicle to drive the financial markets to all-time highs, while the people who actually earn the dollars have been treated as something similar to an open road for the 1 percent to test just how fast they can drive the debt of the economy to unmanageable levels.
I cannot say it has been all bad though. The economy has been growing and consumer spending is now at record levels.
We can argue about how much risk we are now exposed to all day long. But when you compare 2019 to 2009, we seem to be much better off now.
That is not the issue here at all, the issue is when a correction does take place or any other event that can cause cash to flee the system happens for that matter. How much will the Fed, which is currently cutting rates at record employment and all-time stock market highs with no real justification, regret misusing the ammo for the best weapon we must stop the bleeding.